CMA Final · Corporate Financial Reporting · Revenue from Contracts with Customers (Ind AS 115)
Ganga Pumps Ltd's statement of profit and loss shows: revenue from sale of pumps (customer contracts) Rs 600 lakh, which includes excise duty of Rs 40 lakh; rental income from investment property Rs 30 lakh (outside Ind AS 115); impairment loss on trade receivables from customers Rs 5 lakh; and impairment on a loan to a subsidiary Rs 8 lakh. Which presentation or disclosure is consistent with Ind AS 115?
Revenue from contracts with customers of Rs 600 lakh is shown separately from the Rs 30 lakh rental income, the Rs 40 lakh excise duty included in it is presented separately, and the Rs 5 lakh customer impairment is shown apart from the Rs 8 lakh loan impairment.
- ADisclose revenue from contracts with customers Rs 560 lakh, rental Rs 30 lakh, customer impairment Rs 13 lakh
- BDisclose revenue from contracts with customers Rs 600 lakh separately from rental Rs 30 lakh, present excise duty Rs 40 lakh separately, and disclose customer-contract impairment Rs 5 lakh separately from the Rs 8 lakh loan impairmentCorrect
- CDisclose total revenue Rs 630 lakh as one line, with total impairment Rs 13 lakh as one line
- DDisclose revenue from contracts with customers Rs 640 lakh, with customer impairment Rs 5 lakh and loan impairment ignored
Explanation
Paragraph 113(a) needs Rs 600 lakh shown separately from other revenue (rental Rs 30 lakh). Paragraph 109AA requires the Rs 40 lakh excise duty included in revenue to be presented separately, without altering the Rs 600 lakh. Paragraph 113(b) needs the Rs 5 lakh customer impairment separate from the Rs 8 lakh loan impairment. Combining or deducting excise or adding it again misstates the figures.
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